If Trump Truly Wants To Fix the Economy He Should Shut Down the Federal Reserve – Here’s Why

Americans tend to give most of the credit or most of the blame for the performance of the U.S. economy to our presidents but the truth is that an unelected, unaccountable group of central bankers has far more power over our economy than anyone else does. [With the election of Donald Trump as President, however,] we now have an opportunity to get free from this insidious system [because,] if he truly wants to fix the economy…shutting down the Federal Reserve [would be the thing to do]. It would take someone very bold to make a move like this [so it begs the question,] “Is he up to the task?”

The comments above and below are excerpts from an articleby Michael Snyder (TheEconomicCollapseBlog.com) which has been edited ([ ]) and abridged (…) bymunKNEE.com(Your Key to Making Money!) to provide a faster & easier read. Register to receive our bi-weekly Market Intelligence Report newsletter (see sample here , sign up in top right hand corner). It’s free, so what the hell. Sign up for it, try it out and if you don’t like it, unsubscribe. It’s that easy.

A little over a century ago, very powerful forces on Wall Street convinced Congress to completely restructure our financial system. An immensely powerful central bank known as the Federal Reserve was created, and the goal was to transform the U.S. dollar into a debt-based currency that would continuously be inflated and to create an endless debt spiral from which the federal government could never possibly escape. Sadly, they were successful on both counts. Since the creation of the Federal Reserve, the value of the U.S. dollar has declined by approximately 98 percent and our national debt has gotten more than 5000 times larger.

The Federal Reserve has become known as “the fourth branch of government“, but unlike the other branches of government we are told that the Fed’s decisions are “above politics” because they are “too important”. Fed officials fiercely guard their “independence”, and they fiercely resist any “interference” from Congress, the President, or the American people.

Donald Trump can try to lower taxes and reduce regulations, but what he will be able to do to influence the economy pales in comparison to the immensely powerful tools that the Fed wields. The Fed controls interest rates…the money supply…and regulates the banks.

To give you an idea of how enormously powerful the Fed is, I want you to pull out a dollar bill and, as you look at that dollar bill, I want you to notice that it says “Federal Reserve Note” right at the top. In the financial world, a “note” is an instrument of debt, and the truth is that our system was designed to create as much debt as possible.

Why are we using debt-based “Federal Reserve Notes” in the first place? Shouldn’t Congress have control over our currency? According to Article I, Section 8 of the U.S. Constitution, it is Congress that has the authority to “coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures,” so how did the Fed get involved?

Well, it is a very long and convoluted story, and if you are interested in the history behind it I would commend to you an excellent book by C. Edward Griffin entitled “The Creature from Jekyll Island: A Second Look at the Federal Reserve“. Basically, big money interests on Wall Street got their hooks into the White House and Congress, and they rushed through legislation right before Christmas in 1913 that created this insidious central banking system that was designed to slowly but surely take wealth from the American people and put it into their hands.

Sadly, most Americans don’t even realize that we have a debt-based currency, nor do they understand where our money comes from. In a previous article, I discussed how money is normally created by the Federal Reserve under our current system [saying]:

“When the U.S. government decides that it wants to spend another billion dollars that it does not have, it does not print up a billion dollars. Rather, the U.S. government creates a bunch of U.S. Treasury bonds (debt) and takes them over to the Federal Reserve. The Federal Reserve creates a billion dollars out of thin air and exchanges them for the U.S. Treasury bonds.”

The Federal Reserve takes the U.S. Treasury bonds that it receives in exchange for the “Federal Reserve Notes” that it gave to the government and it auctions off those bonds to the highest bidder but, of course, this process always creates more debt than it does money. [Again, as I said in the aforementioned article:]

“The U.S. Treasury bonds that the Federal Reserve receives in exchange for the money it has created out of nothing are auctioned off through the Federal Reserve system. But wait, there is a problem.

Because the U.S. government must pay interest on the Treasury bonds, the amount of debt that has been created by this transaction is greater than the amount of money that has been created.

Where will the U.S. government get the money to pay that debt? Well, the theory is that we can get money to circulate through the economy really, really fast and tax it at a high enough rate that the government will be able to collect enough taxes to pay the debt but that never actually happens…[and] the creators of the Federal Reserve understood this as well.

The Fed understood that the U.S. government would not have enough money to both run the government and service the national debt. They knew that the U.S. government would have to keep borrowing even more money in an attempt to keep up with the game.”

…[The result is that] our debt just keeps going up and up and up. While Barack Obama has been in the White House our national debt has risen by more than 9 trillion dollars, and at this moment it is sitting just under the 20 trillion dollar mark, but we shouldn’t be surprised by this, because this is precisely what the Federal Reserve system was designed to do to us.

Many conservatives still hold to the mistaken illusion that we could somehow pay all of this debt back someday, but as I have shown in a previous article, this is mathematically impossible to do. If the government went out today and grabbed every single dollar in existence we could not pay back the national debt, and of course we have trillions of dollars of household debt, trillions of dollars of corporate debt and trillions of dollars of state and local government debt that we need to pay back as well.

Under the current system our only hope is to keep the wheel spinning by continuing to devalue the dollar and by continuing to go into even greater amounts of debt and, of course, it isn’t just the United States that is in this predicament. At this point, well over 99.9% of the population of the globe lives in a country that has a central bank (a few very small countries, such as the Federated States of Micronesia, do not have a central bank, but the only big nation not to have one is North Korea). Do you think that is just a coincidence?

[With the election of Donald Trump as President, however,] we now have an opportunity to get free from this insidious system [because,] if he truly wants to fix the economy…shutting down the Federal Reserve [would be the thing to do]. The truth is that we don’t have to have a central bank. In fact, the greatest period of economic growth in U.S. history was when there was no central bank.

We don’t need central planners to set our interest rates and to manipulate our money supply. They will never admit this, but the reality of the matter is that their interference in the economy often creates tremendous economic busts. Since the Federal Reserve was created in 1913, there have been 18 distinct recessions or depressions: 1918, 1920, 1923, 1926, 1929, 1937, 1945, 1949, 1953, 1958, 1960, 1969, 1973, 1980, 1981, 1990, 2001, 2008. Considering their track record, isn’t it time for a change?

…We don’t have to have a debt-based currency. In fact, not too long ago we had a president that decided to start issuing debt-free “United States Notes”. Back in 1963, President John F. Kennedy issued Executive Order 11110 which authorized the U.S. Treasury to issue debt-free “United States Notes” which were directly created by the U.S. government…

Most Americans don’t realize this, but many of the debt-free United States Notes that were issued under President Kennedy are still in circulation today, and President Trump could do something similar – but will he?

Conclusion

It has been said that the borrower is the servant of the lender, and the Federal Reserve system has turned all of us into debt slaves. Debt is a form of social control, and the global elite use all of this debt to dominate the planet…

There is a way out, and here in the United States that starts with shutting down the Federal Reserve and issuing debt-free currency. It would take someone very bold to make a move like this, and so let us hope that the man that we just elected is up to the task.

What do you think about the above article? Have your say in the Comment Section below.

DISCLOSURE: It is our intent that all posts on this site be in accordance with the requirements, restrictions and terms of the Copyright Law of the United States and all other copyright treaties to which the United States is party and more specifically of the Digital Millennium Copyright Act - Blogger . As such, all posts on this website have been screened at Library of Congress Catalog as to their eligibility for posting. Should any post be deemed to be inadvertently in contravention of these Acts' terms please advise with substantiation of such apparent contravention (i.e. registration number) and the article in question will be immediately deleted from the site. Also, visit U.S. Code 17-107 Limitations on Exclusive Rights - Fair Use

FAIR USE NOTICE: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of financial, economic and investment issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

COPYRIGHT & DISCLAIMER: Lorimer Wilson is not a registered advisor and does not give investment advice per se. The articles to be found on the site are expressions of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. Please consult with a qualified investment advisor who is licensed by appropriate regulatory agencies in your legal jurisdiction before making any investment decisions, and barring that, we encourage you confirm the facts on your own before making important investment commitments. The information on this site was obtained from sources which we believe to be reliable, but we do not guarantee its accuracy. None of the information, advertisements, website links, or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. Please note that while Wilson may already have invested or may from time to time invest in securities that are recommended or otherwise covered on this website they do not intend to disclose the extent of any current holdings or future transactions with respect to any particular security and, as such, you should consider this before investing in any security based upon statements and information contained in any report, post, comment or recommendation you read on the site.